Contact Gold (C.V) has released the results of seven additional holes that were drilled on the Bravo zone, part of the Green Springs advanced stage gold project in Nevada. The headline result is an excellent 10.7 g/t gold over a 4.57 meter interval which is the higher-grade encounter so far. And although oxide zones typically tend to have lower gold grades, the entire interval (in the Chainman shale) is completely oxidized and should be very much amenable to a heap leach production plan.Cormark Securities called it ‘a record intercept at the Bravo Zone’ and that pretty much sums it up right there.
As Contact Gold emphasizes the complicated structure at Bravo – according to the company , it’s located in ‘an area of extreme structural complication at the intersection of the northern end of the north trending Green Springs Mine Trend with a major fault extending from Bravo through Alpha and beyond’ but the recent drill results confirm Contact Gold seems to be able to connect the dots and the very shallow gold mineralization bodes well for the efficiency of a potential mining scenario down the road.
These good results are following up on the low-grade assay results encountered at the Golf Target, which is located about 1,200 meters east of the mine trend. The holes drilled at Golf could perhaps be considered wildcat holes as they were intended to deliver proof of concept for gold mineralization hosted in the pilot shale, a major host of gold mineralization on the property.
While the grades are rather weak (7.6 meters of 0.83 g/t is good but 4.57 meters of 0.29 g/t gold is rather poor while 3 of the 5 holes did not encounter any significant mineralization), Contact Gold seems to be happy with its proof of concept as the company has now confirmed the pilot shale actually is mineralized on other areas of the property and not just at the mine trend. While the grades and intervals aren’t great, this will help to interpret the structures at Golf and perhaps Contact will be able to finetune its future drill programs trying to improve the grade and increase the size of the mineralized footprint. In any case, the Golf target provides icing on the cake and the near-term value will likely be unlocked at the mine trend where the grades and intervals are more consistent (and higher).
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website. Please read our disclaimer.
